Wendy Bounds, from The Wall Street Journal, says that a CD, or certificate of deposit, is one great way to earn more interest on your savings.
She says there are two critical things you need to know about CDs:
1. Be patient before you cash in or you could pay a penalty for early withdrawal -- CDs take time to mature.
2. Shop around -- interest rates and rules on CDs vary.
For advice on doing your homework and researching CDs watch the video.
More Tips on Saving for Retirement
The best way to save is through your company's 401(k) plan or the equivalent savings plan at work -- you put away pretax money, so your savings lower your tax bill.
Think about your debt -- the better you manage your debt the more you can save, and you'll save in interest fees.
If you have a choice between saving for retirement or saving for your children's education, choose the former. Young people have plenty of time to pay back student loans, but if you retire without enough money you don't have as many options. If you don't put yourself first, you could be a burden on your children later in life.
Saving for retirement sets a good example for your kids.
CLICK HERE for tips on how to make the most of your 401(k).
CLICK HERE for advice on what to do if you and your spouse have different philosophies about saving.
CLICK HERE for tips on how to raise money-savvy kids.